What does 'initial return' on a business mean?

Answer 1

there are some 'guidelines' or 'rules of thumb' or 'buisness standard formulas' to determine the value of some buisness such as vending route formula could be - 1$ per 1$ per yearly gross to determine a starting 'askink value'. Deli's and pizzerias are 7- day store 20 X weekly gross, 6 day store 25 X weekly gross, 5 day deli (nosuch thing as a 5.5 day store, because you still have to be in bed early anyway!, that's my opnion) and the most valuable deli pizzeria would be an industrial type mon.- fri one shift valued at 30 X 35 X the weekly gross. A five day store has a huge value because they are usually one shift 6-4 (no overlaping shifts) and your done till mon. morn. and of course factor in rent / lease/ cam/ elec/ employees/ arae and so on. so 'Initial return on buiz. is if the price iss lets say 100K then how long will it take to get the initial return of the purchase price back? whats your opinion a year? that would equate to 1$ per 1$ per year on NET. on a risky nightclub, some buiz.brokers told me well if your selling then 2$ per 2$ on NET would be a two year return on investment then another broker told me (after i said i was the seller) 1$ per 1$ per year on NET should be the base price(one year return...). so once again the double standard of when your buying or selling and getting a buiz. broker involved . so still my orignal question i posted was what is the value of a night club- not neighborhood bar/ restaurant but a huge night club, with huge overhead etc. worth it grosses just under 2 mill.$$ a year with netting just over half a mill a year.... so what do you think 1$ per 1$ or 2$-2$ per dollar on NET or somewhere in between?

ANSWER:

Initial return is the first tax return that you file with the IRS in the United States and/or the 50 States. The return depends most of the time on when you started the business, and there IRS code and guidelines help you to file your "initial return". Additionally, it also depends on the type of entity that you have from Sole Proprietor to Limited Liability Company to Partnership to a Corporation. Each entity's first filing on tax return is called "initial return".